Digital vehicle marketplace OPENLANE (NYSE: KAR) will be announcing earnings results tomorrow after market close. Here’s what you need to know.
OPENLANE beat analysts’ revenue expectations by 8.2% last quarter, reporting revenues of $455 million, up 12% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ full-year EPS guidance estimates.
Is OPENLANE a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting OPENLANE’s revenue to grow 5.5% year on year to $453.7 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. OPENLANE has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.7% on average.
Looking at OPENLANE’s peers in the business services & supplies segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CECO Environmental delivered year-on-year revenue growth of 39.9%, beating analysts’ expectations by 17%, and Steelcase reported revenues up 1.7%, in line with consensus estimates. CECO Environmental traded up 23.9% following the results while Steelcase was also up 6.5%.
Read our full analysis of CECO Environmental’s results here and Steelcase’s results here.
There has been positive sentiment among investors in the business services & supplies segment, with share prices up 11.2% on average over the last month. OPENLANE is up 6.1% during the same time and is heading into earnings with an average analyst price target of $23.43 (compared to the current share price of $19.15).
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